economic growth

economic growth

China is sometimes called "The Red Dragon," but another, less common nickname for the world's third largest country is "The Kingdom of Bicycles." For some economists, the bicycle -- a vehicle that must keep moving to remain stable and maintain forward momentum -- is an apt metaphor for China's economy. For over three decades, China has had the world's fastest growing major economy. But some believe that the speed and size of its recent expansion mean the country is steering headlong into a crisis.

Thinking small and local, not big and global, may help communities ignite long-term economic growth, according to Penn State economists. Small, locally owned businesses and start-ups tend to generate higher incomes for people in a community than big, non-local firms, which actually can depress local economies, said Stephan Goetz, professor of agricultural and regional economics at Penn State.